Assume the same information as in BEPV–15, except that you can only afford to make annual payments of $6,500. If you decide to trade in your present car to help reduce the amount of financing required, what trade-in value would you need to negotiate to ensure your annual payment is $6,500? 

Refer in BEPV-15,

You would like to purchase a car that costs $32,000, and the dealer offers financing over a five- year period at 3%. If repayments are to be made annually, what would your annual payments be?